RAJESHWAR PRASAD SINHA S/O LATE JAIPATI SINGH PARTNER HIND CONCRETE ALLIES MANUFACTURING COMPANY Vs. BIHAR STATE FINANCIAL CORPORATION THROUGH ITS MANAGING DIRECTOR AND ORS

JUDGEMENT

(1.) Heard learned Counsel for the parties.

(2.) M/s Hind Concrete Allies Manufacturing Company was set up as a partnership firm of four partners which was duly registered on 26.6.1984 and the object of the said partnership was to set up an Industrial Unit for manufacturing of P.S.C. electric poles.

(3.) Since the partners did not have the requisite capital they approached the respondent Bihar State Financial Corporation (hereinafter referred to as "Corporation") for sanction of loan. The loan was sanctioned on 27.12.1985 for a sum of Rs. 9 lacs. The agreement was entered between the original partners as well as the respondents. Over a period of time the unit ran into certain difficulty, default was committed in repayment and therefore the respondent Corporation decided to auction sale the mortgaged or hypothecated assets of the said manufacturing company. A decision in this regard was taken by erstwhile Managing Director which is annexure-B to the counter affidavit filed on behalf of the respondents.